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Foodtech unicorn Zomato started the striking off process for its Singapore and UK entities on August 31, 2021, according to the company’s latest BSE filings.
The company said Zomato Media Private Ltd (ZMPL) and Zomato UK Ltd (ZUL) did not have any active operation and thus the dissolution of the two entities will not affect the revenue of Zomato Ltd. Further, Zomato reported the networth for ZMPL as ₹0.65 million and for ZUL, the networth is ₹ -1.64 million.
In mid-August, Zomato also dissolved and wound up its US entity, Zomato USA LLC (ZUL). This was also not a material subsidiary of Zomato and did not have any business activity. Thus, the dissolution of ZUL also did not affect the revenue of the company.
In its quarterly results, Zomato has reported its adjusted revenue to have grown by 26 per cent quarter-over-quarter to ₹11.6 billion. Revenue growth was largely attributed to the growth in the company’s core food delivery business, which continued to grow despite the second Covid-19 wave starting April.
Further, adjusted EBITDA loss reported by the company was ₹1.7 billion in Q1 FY22 as compared to ₹1.2 billion in Q4 FY21. Further, the loss for Q1 FY22 reported in the company’s financial statements is ₹3.6 billion as compared to the adjusted EBITDA loss of ₹1.7 billion. This was said to be largely because of non-cash ESOP expenses which had increased in Q1 FY22 due to significant ESOP grants made for the creation of a new ESOP 2021 scheme.
Zomato claims to have delivered a billion orders in the past six years, of which about 10 per cent were delivered in the last three months.
Last month, Zomato also acquired 9.16 per cent stakes in Grofers India Private Ltd and 8.94 per cent shares in Grofers’ wholesale vertical Hands on Trades Private Ltd. Grofers recently launched its quick commerce segment, which promises to deliver groceries in under 10 minutes. Zomato’s arch-rival Swiggy has also started a similar quick commerce vertical Instamart and has been betting on its non-food delivery business to become the next avenue for company growth.
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